UPDATE 2-Ukraine parliament gives preliminary nod to emergency energy plans
Source: Reuters
KIEV, July 4 (Reuters) - Ukraine's parliament gave preliminary approval on Friday to a draft law that would allow the Kiev government to exert tighter control over the energy sector in the face of dwindling natural gas supplies after Russia cut off exports last month.
The parliament also approved, in a first reading, a bill that would allow consortiums with European or U.S. companies to operate Ukraine's ageing gas distribution system and storage facilities.
"Russia is trying to tighten as many screws as possible on us," Prime Minister Arseny Yatseniuk told parliament, urging it to give his government the right to declare a "state of emergency" in the energy sector.
Read more: http://in.reuters.com/article/2014/07/04/ukraine-crisis-gas-draft-idINL6N0PF1OG20140704
See also : Ukraine One Step Closer to Letting US, EU Investors Manage 49% Gas Transit System. http://www.democraticunderground.com/1014839528
In associated news
Ukraine's Finance Ministry on Friday published a list of eight paths to replacing its natural gas imports, an energy source that has been in peril since Russian gas giant Gazprom — previously the provider of half of Ukraine's gas – shut off deliveries last month.
"Each of the proposed courses may be developed subject to their feasibility in specific regions of Ukraine," the ministry said in a statement on its website.
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On the list is liquefied natural gas, or LNG, which could serve as "an alternative to Russian natural gas," the statement said. There are a number of outstanding issues, however, including locating suppliers, allocating land for the construction of LNG terminals and attaining permission from Turkey to transit gas through the Bosphorus straight, it said.
The ministry also proposed employing a number of unconventional fuels, including biofuels, or fuels produced from conversions of biomass; coal-water slurry, a fuel consisting of fine coal particles suspended in water; and synthesis gas, or syngas, produced via the gasification of coal.
http://www.themoscowtimes.com/business/article/ukraine-considers-8-alternatives-to-russian-gas/503013.html
Turkish expert calls Ukraine’s plans to build LNG terminal unrealistic.
Ukraine’s plans for building a liquefied natural gas terminal in Odesa Oblast seem unlikely, since there is no legal way of transporting the LNG to the country’s Black Sea shore, said Oktay Tanrisever, program coordinator for the Ankara-based Center for European Studies, during a conference in Kyiv on July 3.
Such a terminal in the long term could cover 20 percent of country’s almost 50 billion cubic meters annual needs in natural gas and reduce dependence on the Russian supplies, experts admit.
Previously announced joint Ukrainian-Turkish project implying building LNG terminal on the Turkish Black Sea shore faces the same obstacle.
“A NATO convention forbids the transit of large volumes of combustible materials through the Dardenelles,” Tanrisever explained. “Fear of a terrorist attack, you understand. So, any plans to build LNG terminals on the northern Turkish coast or near Odesa in Ukraine are pointless. Also, sourcing LNG is complicated and expensive.”
http://www.kyivpost.com/content/business/turkish-expert-calls-ukraines-plans-to-build-lng-terminal-unrealistic-354707.html
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NAK Naftogaz Ukrainy is planning to sell 15 percent of its gas extraction unit in an initial public offering next year.
Ukrgazvydobuvannya’s market value may reach as much as $12 billion by 2015 if the government allows the company to raise gas prices, chief adviser to the chairman, Yuriy Vitrenko, said by phone yesterday.
Agricultural producer Ukrlandfarming Plc yesterday said it was considering an IPO in London and Hong Kong as local businesses struggle to raise funds amid a separatist uprising in the country. The benchmark UX Index fell 1.5 percent to the lowest close since May 23 in Kiev as government troops retook a majority of districts in the east after peace talks with Russia faltered.
The IPO will be “part of an overall reform of Ukraine’s gas market,” Vitrenko said. “It would be much easier for us to sell internationally, but the idea is to also help make the domestic market more attractive.”
http://www.bloomberg.com/news/2014-07-04/naftogaz-to-sell-15-of-unit-in-2015-ipo-to-boost-ukraine-market.html?cmpid=yhoo
First steps in privatisation of the State owned company. 